TaxTMI 
TaxTMI 
TaxTMI 
2017 (4) TMI 460
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....Appeals)-13, Mumbai (hereinafter called as Ld. CIT (A) in short) dated 21.12.2012 passed against the Assessment Order of the AO dated 30.11.2011 u/s 143 (3) r.w.s. 254 of the Income Tax Act, 1961 (in short Act) for Assessment Year 2004-05 on the following grounds: 1:0 Re: Disallowance of software expenses- Rs. 41,51,768/- : 1:1 "The Commissioner of Income Tax (Appeals) has erred in upholding the view of the Assessing Officer that an amount of Rs. 41,51,768/- being incurred by the Appellant during the year on of software is a capital expenditure. 1:2 The Appellant submits that considering the facts and circumstances of its case and the law prevailing on the subject, the expenditure of Rs. 41,51,768/- incurred during the year for acqu....
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.... the decision of Amway India Enterprises, supra, Ld. CIT (A) held with impugned expenditure is a capital expenditure entitled for depreciation @ 60%. During the course of hearing before us, nothing wrong could be pointed out in law or in facts in the findings of Ld. CIT (A). Therefore, we uphold the order of the Ld. CIT (A) on this issue. 3. As a result, appeal of the assessee is dismissed. Now, we shall take up appeal in ITA No. 2008/M/2011 filed by the assessee against the order of Ld. CIT (A) dated 26.10.2010 passed against the Assessment Order of AO dated 17.12.2007 u/s 143 (3) of the Income Tax Act, 1961 for AY 2005-06 on the following grounds: 1. "The CIT (A) erred in upholding the action of the Assessing Officer in restricting th....
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.... the Assessing Officer of making a disallowance u/s 14A of the Act. 3.2 The CIT (A) erred in directing the Assessing Officer to compute the disallowance u/s 14A on the basis of 0.5% of the monthly weighted average of investments in tax free securities. Without prejudice to the above, the Appellant contends that, in the facts of its case, no expenditure has been incurred for the purpose of earning the exempt income and, accordingly, no expenditure is required to be allocated, as having been incurred in relation to the income claimed exempt from tax. 3. The Appellant prays that the order of the AO be amended to grant reliefs claimed above. 4. The Appellant craves leave to add to, alter or amend, any of the foregoing grounds of appeal....
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....ty, even as mere holding of investment, as where in stocks and shares, subject to market volatility in response to various economic-macro and macro, factors, may require decision making at, and thus involvement, of the higher management, entailing incurring cost. In fact, as we observe, there is not much difference between the opening and the closing value of the investment and, two, the bulk of the tax exempt income arising by way of interest on tax-free bonds. The Revenue, in our view, ought to have required the assessee to substantiate its claim of the working of suo motu disallowance u/s. 14A with reference to its accounts, and which would include the underlying vouchers as well. The A.O. upon making such enquiry as he deems fit and pro....